Comment by Riaz Haq on December 13, 2015 at 5:07pm

Post-#BlackFriday: In #Pakistan, #ecommerce entering a new era with big-ticket items sales to rural customers http://tribune.com.pk/story/1009343/post-black-friday-in-pakistan-e... …

Not long ago, e-commerce in Pakistan was primarily related to online sales of smartphones, laptops and fashion apparel and almost all online retail sales were generated from Karachi, Lahore and Islamabad – the largest urban centres constituting major markets for e-commerce even today.

Fast forward to 2015, Pakistan’s e-commerce sector held the country’s first ever ‘Black Friday’ in the last week of November. The industry noticed people buying washing machines and televisions online with orders coming from as far as Tando Allahyar. The rural town, as opposed to a daily average of one, placed 50 orders on Homeshopping.pk, a major player, which had 40,000 people on its website when the deal started at midnight (the night between Thursday and Friday).

According to major market players, one-third of the total Black Friday transactions were online – a major shift in the consumer habit from cash-on-delivery (CoD), which still accounts for more than 95% of Pakistan’s e-commerce that has already surpassed the $100 million milestone. These Black Friday trends indicate e-commerce in Pakistan is certainly picking up.

According to industry experts, e-commerce follows a four-phase growth cycle from infancy to maturity in any new region. Some say China has entered the third phase while India is close to finishing the second.

However, when it comes to Pakistan, many say the country’s e-commerce is still in its infancy. But a successful Black Friday, which received an overwhelming response from consumers across Pakistan, certainly merits a question: is the country’s e-commerce entering level two?

“Absolutely, Pakistan’s ecommerce is entering the second phase,” says Saman Javed, Head of Communications and PR at Daraz, which started Black Friday sales and invested heavily in its marketing for consumer awareness.

“One-third of the payments were online, which indicates a shift in consumers’ attitude who now trust online payment system,” Javed said, adding the response was beyond the company’s expectations, which shows the demand people have here is almost similar to elsewhere in the world.

Though it didn’t disclose sales figures, Daraz said it offered Rs132 million in discounts during Black Friday sales when 1.5 million people visited its website.

Another factor indicating an overwhelming consumer response was the websites of Daraz.pk and Homeshopping.pk – which attracted almost all the traffic on November 27 – went down immediately after the sale began.

“We witnessed something we have never seen before,” Shayaan Tahir of Homeshopping said, adding there were 1,000 people on their page at a single point in time. “It will be even bigger next year.”

Homeshopping sold Rs5.6 million worth of iPhones at more than one phone per minute during the first hour of its ‘White Friday’ sale before running out of stock. The company sold 45 units iPhone 6 Plus and 25 units of iPhone 6. This is in addition to 100 units of smartwatch sold by the online retailer.

By contrast, iPhone deal on Daraz was sold out within minutes and many consumers complained over being left out. The traffic was insane and not everyone could get what they wanted, says Javed. It’s a global trend where people fight for the best deals that sell out in minutes, she added.

While smartphones remained the top-selling category on all major platforms, other sectors were also impressive. Daraz says it had record-breaking sales for fashion while home appliances brands, such as Kenwood and Dawlance were also amongst the top sellers. On the other hand, TVs were among top selling categories at Homeshopping.

Comment by Riaz Haq on December 15, 2015 at 8:00am

Samwers Peddle iPhones in #Pakistan for Emerging Market Lead. #BlackFriday #ecommerce http://bloom.bg/1QpyUhP via @technology

When Rocket’s shopping site Daraz held a Black Friday sale in Pakistan, orders jumped 55-fold compared to regular days, with rebated Apple Inc. Iphone 6s handsets selling out in five minutes. The same day, Rocket’s African shopping site Jumia had 35,000 orders mainly from Nigerian customers, with one in four of them new to the platform.
Rocket, which has already built up online retailers in countries including Indonesia, Nigeria and Pakistan, plans to expand further in Africa and Southeast Asia in a bet that young and growing populations, rising Internet and smartphone use and a widening middle class will fuel revenue growth and eventually profit. The Berlin-based company -- founded by Oliver, Marc and Alexander Samwer -- needs these regions to grow because unlike Amazon.com Inc. in the U.S. and Alibaba Group Holding Ltd. in China, Rocket doesn’t dominate one large home market.

Comment by Riaz Haq on July 10, 2017 at 10:45pm

#Pakistan-based apparel #fashion label Sana Safinaz's #cloud-based e-tail solution featured in Magento case study https://magento.com/customers/sana-safinaz …

For Sana Safinaz, Pakistan’s leading fashion brand, March is the start of the summer season, and the fashion industry’s hectic ‘lawn season.’ ­According to the Hindustan Times: “Lawn is the name Pakistanis use to refer to the brightly colored cotton fabric sold in stitched and unstitched form in a myriad of hues, to an eager set of buyers who will sometimes go to great lengths to get their favourite suit pieces.” During this peak season, shopping malls are overwhelmed with customers. “Compared to normal trading days at our brick and mortar stores, the footfall during collection launches increases 600 percent,” reveals Sana Safinaz’s Haris Ahmed, their Head of Retail Business. You can only imagine the impact of traffic on the brand’s website.

“Our website goes crazy,” says Moeed Ahmed of the Sana Safinaz Digital Business team. “Brand collection launches during the lawn season are met with an abnormal spike in traffic,” adds Tariq Siddiqui, the brand’s Manager of Digital Business. “Across the whole industry it’s rare to find a site that has the infrastructure to successfully handle a surge without affecting customer experience.” Adding to their traffic is the company’s regular investment in highly-optimized Google search/adwords campaigns, that generates almost 35 percent of their total traffic. With the spotlight on Sana Safinaz this summer season, and the eCommerce business becoming a high percentage of the company’s total inventory, their site had to perform. Oh, and they only had a month before launch. Naturally, they chose Magento Commerce.  

Sana Safinaz got to work straight away with their local development partner, Webwork Solution (Pvt.) Ltd. They chose Magento Commerce (formerly Magento Enterprise Cloud Edition), so they would never have to worry about servers and traffic spikes again. They also wanted to beat their competition by capitalizing on the rich core functionalities of Magento Commerce, and its highly effective marketing/segmentation modules. The team broke the project into two phases: Phase one included the “must have” features like order fulfillment and integration with their Point of Sale system. Phase two focused on additional capabilities like social media extensions to generate additional sales through social platforms, along with other site feature deployments.

With Magento, the Sana Safinaz team spent their time improving site structure and user experience, rather than panicking about IT and site crashes. With a cloud solution built on AWS, they knew their new Magento Commerce site could handle the crazy traffic that was about to hit.

The moment of truth arrived on March 3, 2017. Across Pakistan, the lawn season had begun, and millions of Pakistani women were hustling to buy their ultimate summer outfit. The Sana Safinaz site went live, and on the first day it processed more than 5,000 orders. Before Magento Commerce, the most orders ever processed on a single day was 1,000. As page views increased by 87 percent, their customers were raving on social media: “We were able to place orders so smoothly,” wrote one customer, “Never had this with other brands.”

Adoption of eCommerce in Pakistan has been slower than other parts of the world due to infrastructure issues. Customers can also be distrustful of online payments and delivery. Sana Safinaz is helping to change that. The launch was so successful that it increased the share of digital business in the company’s overall revenue, and redefined Sana Safinaz’s eCommerce strategy.

The positive customer response is directly tied to the scalability, flexibility, and stability of Magento Commerce, and for Sana Safinaz, the sky is the limit. Today, the brand is experimenting with Magento Business Intelligence to find out more about their customers. They’re implementing an omnichannel solution to integrate their 30 brick-and-mortar stores, and are expanding internationally. As Sana Safinaz discovered, with Magento Commerce you don’t fear traffic spikes, you celebrate them.

Comment